FCC Adopts New Restrictions on Prerecorded and Automated Telemarketing Calls | Practical Law

FCC Adopts New Restrictions on Prerecorded and Automated Telemarketing Calls | Practical Law

On February 15, 2012, the Federal Communications Commission (FCC) issued a Report and Order under the Telephone Consumer Protection Act of 1991 (TCPA) imposing new restrictions on autodialed and prerecorded telemarketing calls (robocalls).

FCC Adopts New Restrictions on Prerecorded and Automated Telemarketing Calls

Practical Law Legal Update 7-518-0785 (Approx. 3 pages)

FCC Adopts New Restrictions on Prerecorded and Automated Telemarketing Calls

by PLC Intellectual Property & Technology
Published on 16 Feb 2012 • USA (National/Federal)
On February 15, 2012, the Federal Communications Commission (FCC) issued a Report and Order under the Telephone Consumer Protection Act of 1991 (TCPA) imposing new restrictions on autodialed and prerecorded telemarketing calls (robocalls).
On February 15, 2012, the FCC issued a Report and Order under the Telephone Consumer Protection Act of 1991 (TCPA) imposing new restrictions on autodialed and prerecorded telemarketing calls (robocalls). The new rules intend to protect consumers from unwanted robocalls and maximize consistency with the FTC's Telemarketing Sales Rule. This agency coordination is required under the Do-Not-Call Implementation Act.
Specifically, the Report and Order implements four new restrictions:
  • Telemarketers must get express written consent before placing robocalls. Consent can be provided electronically.
  • The "established business relationship" exception to the FCC's existing telemarketing rules no longer applies to robocalls. Under the TCPA, this exception allowed robocalls to residential lines when the caller had an established business relationship with the consumer.
  • Telemarketers placing robocalls must include an automated, interactive opt-out mechanism on each call so the called party can cease further calls.
  • The Commission’s existing rules include a 3% limit on the percentage of dropped or abandoned calls that a telemarketer may incur using predictive dialers over a 30-day period. The current rules allow telemarketers to average the number of dropped or abandoned calls over multiple campaigns. This rule is modified so that the number of dropped or abandoned calls will be measured on a "per campaign" standard.
The Rule and Order exempts prerecorded calls to residential lines made by health care-related entities governed by the Health Insurance Portability and Accountability Act of 1996 from TCPA requirements. Calls made for emergency purposes will continue to fall outside the TCPA restrictions.
The Report and Order also does not affect requirements for prerecorded messages that are non-marketing, informational calls, for example:
  • Calls by or on behalf of tax-exempt non-profit organizations.
  • Calls for political purposes.
  • Calls for other noncommerical purposes, including those that deliver purely informational messages such as school closings.
However, these calls will continue to require some form of prior express consent under the TCPA and the FTC's rules (although not necessarily written), if placed to wireless numbers and other specified recipients.
For more information on privacy issues, see Practice Note, US Privacy and Data Security Laws: Overview.